Guidelines on the classification of public service providers in the construction sector in Vietnam from February 19, 2025

Guidelines on the classification of public service providers in the construction sector in Vietnam from February 19, 2025​ (Image from Internet)

On December 30, 2024, the Minister of Construction of Vietnam issued Circular 15/2024/TT-BXD stipulating criteria for classification, conditions for establishment, merger, consolidation, and dissolution of public service providers in the construction sector.

Guidelines on the classification of public service providers in the construction sector in Vietnam from February 19, 2025

The classification of public service providers in the construction sector is regulated in Articles 4, 5, and 6 of Circular 15/2024/TT-BXD as follows:

(1) For classification by function and duties

- Public service providers serving state management in the construction sector must have at least one of the following areas: urban planning; architecture, construction investment activities, urban development, technical infrastructure, housing, real estate market, and construction materials.

- Public service providers providing public services

+ Public service providers providing public services utilizing the state budget or essential public services in the construction sector according to a list approved by the competent authority;

+ Other Public service providers providing public services in the construction sector.

- Public service providers serving state management and providing public services are units that perform one or more functions and duties specified in Clause 1 and one or more functions and duties specified in Clause 2, Article 4 of Circular 15/2024/TT-BXD.

The identification of public service provider types in Clause 3, Article 4, Circular 15/2024/TT-BXD is based on the functions and duties of public service providers approved by the competent authority.

(2) Classification by the competent authority establishing

- Public service providers established by the authority of the Prime Minister of the Government of Vietnam.

- Public service providers established by the authority of Ministers, heads of ministerial agencies, heads of agencies under the Government of Vietnam, heads of organizations established by the Government of Vietnam, the Prime Minister of the Government of Vietnam that are not public service providers.

- Public service providers established by the authority of the provincial People's Committee.

- Public service providers established by the authority by other entities as prescribed by law.

(3) Classification by financial autonomy level

- Classification according to the level of financial autonomy of public service providers:

+ Public service providers self-financing both recurrent and investment expenditures;

+ Public service providers self-financing recurrent expenditures;

+ Public service providers partially covering their own recurrent expenditures;

+ Public service providers with recurrent expenditures guaranteed by the state.

- The determination of financial autonomy levels of public service providers in the construction sector in Clause 1, Article 6 of Circular 15/2024/TT-BXD is implemented according to regulations by the Government of Vietnam on the financial autonomy mechanism of public service providers.

Note: The above regulations apply only to public service providers in the construction sector established by competent authority according to law. It does not apply to:

+ Public service providers under the Ministry of Public Security and Ministry of National Defense;

+ Public service providers under the management of special administrative-economic units. (According to Article 2, Circular 15/2024/TT-BXD)

More details can be found in Circular 15/2024/TT-BXD, effective from February 19, 2025.

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